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New Day Saturday

Trump Hunkers Down At Camp David As North Korea Summit Looms; South Korea Hails June 12th "Meeting Of The Century"; U.S. In Early Talks For Potential Trump-Putin Summit; Kim Jong-un Letter To Trump "Carefully Examined" Fox Toxins; Explosions Not Big Enough To Destroy Nuke Tunnels; Metal Tariffs Could Raise Prices On Everyday Products; Small Plane Forced To Land In Rush Hour Traffic. Aired 7-8a ET

Aired June 02, 2018 - 07:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(BEGIN VIDEO CLIP)

[07:00:00] DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I think it's going to be very successful. They're incredible people. I think it's going to be a very great success. We will see you on June 12th.

SEN. MITCH MCCONNELL (R-KY), SENATE MAJORITY LEADER: I think the main situation is to work. You have to not want to deal too much. You could get sniggered.

JAMES MATTIS, SECRETARY OF DEFENSE: We're no longer seeking in the summit a speedy denuclearization; we are now seeking get to know each other session. That's alarming in and of itself.

UNIDENTIFIED MALE: Despite China's claim to the contrary. The placement of these weapons systems is tied directly to military use for the purposes of intimidating.

UNIDENTIFIED MALE: Sources say, the White House is working on a possible summit between President Trump and Vladimir Putin.

TRUMP: Ask Melania. She's doing great, right there. She's doing great. She's looking at us right there.

(END VIDEO CLIP)

ANNOUNCER: This is NEW DAY WEEKEND, with Victor Blackwell and Christi Paul.

VICTOR BLACKWELL, CNN ANCHOR: Good morning to you. President Trump is at Camp David this morning preparing for the summit. South Korea is already calling the meeting of the century.

CHRISTI PAUL, CNN ANCHOR: 10 days and counting until he sits down with North Korean Leader, Kim Jong-un, but not all U.S. allies are as optimistic about this at South Korea. Japan, for one, is warning against history of repeating itself saying overnight: do not reward North Korea for just agreeing to show up at the summit. The president met for more than an hour in the oval office with Kim Jong-un's top lieutenant. BLACKWELL: After that, he said the summit was back on. We're live

from Singapore where it's set to take place in a little more than a week, and we're also at the White House where we start right now with Ryan Nobles. Ryan, good morning.

RYAN NOBLES, CNN CORRESPONDENT: Victor and Christi, good morning. And to Christi's point about some in the Asia-Pacific region, warning President Trump about going into this summit with certain expectations. It's not just those leaders, there's also many prominent Republicans right here in Washington that are concerned that perhaps President Trump has bit off a little more than he can chew in this situation. Among them, Majority Leader Mitch McConnell, the Senate Majority Leader, warning that the president could be snookered by going into this meeting with Kim Jong-un. And no one knew really what to expect when the president emerged from a lengthy meeting with Kim Yong-choi, the former spy chief, one of the top deputies to Kim Jong-un. He emerged from that oval office meeting and surprised everyone by saying the summit was back on. This after declaring not long ago that the summit was off. And while there's a lot of criticism about what could potentially happen in the summit and that this has now given North Korea the advantage, the president was quick to warn the North Korean leaders saying that he still has many options on the table including sanctions. Take a listen.

(BEGIN VIDEO CLIP)

TRUMP: One thing I did do, and it was very important, we had hundreds of new sanctions ready to go on. And he did not -- the director did not ask, but I said I'm not going to put them on until such time as the talks break down. We have very significant sanctions on that. But we had hundreds, we have hundreds that are ready to go. But I said, I'm not going to -- why would I do that when we're talking so nicely?

(END VIDEO CLIP)

NOBLES: They are talking nicely now, but the president certainly dialing back expectations as to what could actually come out of this summit. Initially, there were lofty goals as to what could happen when he and Kim Jong-un sat down. Now, this is being described as more of a get-to-know-you-meeting with the hopes that they can begin serious talks about things like denuclearization and the formal end to the Korean War. Christi and Victor?

PAUL: All right. So, Ryan, we're also now hearing reports that a Putin summit is being talked about. What have you heard in that regard?

NOBLES: Yes, that's right, Christi. The Wall Street Journal reporting that both the White House and the Kremlin in the very early stages of a conversation about getting both Vladimir Putin and Donald Trump together. Apparently, the new Russia Ambassador, John Huntsman, the former Governor of Utah, taking the lead on these negotiations, attempting to finds an opportunity for these two leaders to sit down. And Sarah Sanders confirming to the journal that those talks are taking place. But everyone cautioning that this is the very early stages of this conversation. And that the president himself won't begin to engage in this process until long after the North Korea summit is behind him. Of course, President Trump only met face to face with Vladimir Putin on two other occasions. And of course, his meeting would come against the backdrop of the investigation into his campaign's potential ties to Russia and fallout that could occur when Robert Mueller completes his investigation. They want to make it happen. The question is: when and where?

[07:05:14] BLACKWELL: All right. Ryan Nobles at the White House. Ryan, thank you.

PAUL: Thanks, Ryan. Now, intelligence officials are doubting North Korea's major show of goodwill. We're going to get to that in a minute. We do want to get to Will Ripley, though, who is in Singapore. So, Will, what are you hearing from that location about what is anticipated there in the next ten days?

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: Hi, Christi. Yes, they certainly have a limited amount of time to take care of a lot of logistical details. We know that North Korea has a delegation here along with the United States, and they are sorting out everything from accommodation for President Trump and the North Korean leader Kim Jong-un to the actual venue for the summit itself. They have to have the right security, they have to have the right infrastructure in place for what is expected to be massive media interest descending on this small city/state from all over the world. I mean, this is a city that has hosted tricky summits before, but never anything like this. The South Korea calling it the meeting of the century. And all of this unfolding shortly after President Trump received that oversized letter in the oval office. The contents of which he has yet to reveal. But we know that Kim Jong-un is a fan of letter diplomacy. When he wants to communicate with someone in the highest, most respectful way aside from a face-to-face meeting, he sends a letter. And apparently, President Trump from the photograph in the White House was pleased to receive that and encouraged enough by his content of the discussions with Kim Yong-chol, North Korea's ex-spy chief, to move forward with the summit here June 12th -- and Singapore. There's a meeting happening between regional defense leaders, the U.S. Secretary of Defense James Mattis spoke here. We also heard from the South Korea and Japan. The striking an optimistic tone about the summit. The Japan, much more skeptical pointing that history, in the past, they shown North Korea reneging on any nuclear deals, but the South Koreans saying that they hope it will be a positive step forward and we'll change the course of history. Limited time here to get everything sorted out, Christ and Victor.

BLACKWELL: Just ten days. Will Ripley there, at the city hosting this big summit -- Singapore. Thanks so much.

PAUL: And North Korea's major show of goodwill, as it was touted is being called into question now. The regime, remember, claimed to destroy their nuclear testing site in front of a select group of journalists. The point is there are no -- or were no experts invited. Will was there, but no experts. Jung Pak, Chairman -- or Chairwoman, rather in Korea Studies at Brookings Institute is with us now. Thank you so much for being with us, Jung. First of all, your confidence level that North Korea did indeed destroy something that, at one point, have been very valuable to them.

JUNG PAK, CHAIRWOMAN, KOREA STUDIES AT BROOKINGS INSTITUTE: You know, when they first announced that they wanted to dismantle that nuclear test site, my initial thought was, oh, they must have another testing site. And it was also very suspicious that they didn't invite any experts to the site to witness the explosions. And I think the experts -- ever since the North Koreans have said that they're going to do this, recognize that this was much more of a show rather than a genuine attempt at denuclearization.

PAUL: OK. So, with that said, let's listen together here to Mitch McConnell what he is saying essentially to President Trump ten days ahead of this summit between the president and Kim Jong-un.

(BEGIN VIDEO CLIP)

MCCONNELL: It's going to be quite a challenge. And I think for these situations to work, you have to not want to deal too much. If you fall in love with the deal. And it's too important for you to get it. And the details become less significant. You could get snookered.

(END VIDEO CLIP)

PAUL: President Trump said he is a key negotiator. This is something that he is very talented with. Kim Jong-un -- Jung, tell me, does Kim Jong-un, is he adroit enough to snooker President Trump?

PAK: You know, I think the size of the letter that Kim Yong-chol gave to President Trump is a good signifier of how Kim Jong-un and the regime knows how to play the game. The letter -- you can't mistake the letter. It's not a small, regular-size letter, but it's done for theatrics. And the fact that the size of the letter, the size of the explosion at the Punggye-ri Nuclear Test Site, the bluster from -- coming from North Korea, all of that is done for show and for theater. And I think Kim Jong-un so far has shown a great deal of aptitude for engaging in diplomacy. For example, he's saying the right things to President Xi of China, talking about Chinese economic reform. He's saying the things to the South Korean president talking about peace and brotherhood and ending the Korean War. And with President Trump, he is using flattery and other things to make sure that he gets this summit, but he's also not giving away the store.

[07:10:13] PAUL: So, Japan's defense minister said that North Korea shouldn't be rewarded for agreeing to talks. He said, in fact, in light of how North Korea has behaved in the past, I believe it's important not to reward North Korea solely for agreeing to have a dialogue. What reward do you think Japan might be concerned about and what message is that sending to President Trump?

PAK: So, Japan has been sidelined in all of this, and Japan is still the only country that's calling for a maximum pressure on North Korea, which is a striking reversal from just six or seven months ago when the U.S. and Japan were standing side to side together on demanding complete denuclearization of North Korea. So, Japan and others are concerned about the fact that North Korea's getting this major summit with the sitting U.S. president without having had to give anything in response. As we've seen in the blasting of the nuclear test site was not real. They have said repeatedly and they've been consistent in this, that they're not going to give up their nuclear weapons without these maximalist conditions that in place. So, I think several people, many people share the concern of Japan and Mitch McConnell and others that we have to be careful about legitimizing Kim Jong-un even as he holds the nuclear weapons.

PAUL: All right. Jung Pak, so good to have your insight this morning. Thank you for being here.

PAK: Thank you.

BLACKWELL: Let's talk a little more about Secretary Mattis' comments overnight. The breaking news that he says that the -- he's accusing, rather, China of intimidation and coercion. Defense Secretary James Mattis is in Washington, is concerned about Beijing's militarization of the South China Sea islands. Mattis says last month China's Air Force landed bombers and deployed military hardware on the disputed islands as part of a training exercise. That raised alarms in the region. Listen to more of the secretary.

(BEGIN VIDEO CLIP)

MATTIS: China's militarization of artificial features in the South China Sea includes the deployment of any shipped missiles, surface-to- air missiles, electronic jammers, and more recently the landing of bomber aircraft at woody island. Despite China's claims to the contrary, the placement of weapons systems is tied directly to military use for the purposes of intimidation and coercion.

(END VIDEO CLIP)

BLACKWELL: And Mattis added the U.S. does not plan to abandon its role there in the region.

PAUL: A wild ride ends with what many people are calling a miracle. Drivers could not believe it when a pilot was forced to land right in the middle of rush hour.

BLACKWELL: Plus, tariffs imposed by President Trump could end up hurting American consumers. Why the price of beer among other products you buy every day could cost you more.

PAUL: And thousands of people are going to be marching across the country, raising awareness for gun safety and honoring the people who've died as a result of gun violence. The co-founder of today's Wear Orange Campaign is with us just ahead.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

[07:17:18] TRUMP: We did not talk about human rights. Could be. Yes, could be. I think we probably will, and maybe in great detail. We did not talk about human rights.

PAUL: Go ahead.

BLACKWELL: No talk of human rights there. A meeting with the former North Korean spy chief in the White House and the summit on June 12th with the North Korean dictator. Is the Trump administration ignoring North Korea's history of human rights abuses ahead of this meeting? Let's talk about that and more with CNN's Will Ripley live from Singapore; Errol Lewis, CNN Political Commentator and Political Anchor for Spectrum News; and Walter Shaub, CNN Contributor and former Director of the Government Ethics Office.

Gentlemen, good morning to you. Will, I want to start with you because this follows a narrative. President Trump, as far as we know, did not talk about human rights with the Saudis when they traveled for the first time as U.S. president overseas, didn't talk about with Duterte of the Philippines, did not talk about with Erdogan of Turkey, and on and on. Tell us about Kim Yong-chol and why that is a significant topic with him about North Korea.

RIPLEY: Yes, he also hasn't talked about it with Xi Jinping of China, which has its own record of human rights abuses. But you know, this particular meeting with Kim Yong-chol, particularly controversial. I mean, this is a figure who South Koreans really have despised for a long time. He's believed to be the mastermind of the sinking of the South Korean naval ship that killed dozens of South Korean sailors. He's believed to be the mastermind of the hack on Sony Pictures Entertainment. And he's also believed to be one of the officials responsible for jailing a significant number, tens of thousands, perhaps hundreds of thousands of North Koreans in these political re- education camps for people who are perceived to be disloyal.

And yet the issue of human rights in North Korea simply has not been brought up by the Trump administration in this case. Now, some may argue that President Trump is being practical here, that bringing up human rights would be a non-starter, it would shut down these denuclearization talks before they begin. They might argue that the issue of nuclear weapons is a bigger, pressing concern for U.S. national security. The North Korea's human rights record. But then, you have a lot of other people around the world saying that any nuclear deal really isn't sustainable, Victor, unless the human rights issue is also tackled but it's not going to happen here in Singapore on June 12th.

BLACKWELL: Error, the administration boasts that they have conceded nothing, offered no concessions thus far with North Korea. They didn't offer anything in exchange for the return of those American detainees; they didn't offer anything for the demolition of tunnels at Punggye-ri, although that's not looking to be just P.R. But Kim Yong- chol was in the oval office yesterday for more than an hour with the president of the United States. Are the North Koreans now halfway home by the legitimacy of that meeting?

ERROL LEWIS, CNN POLITICAL COMMENTATOR AND POLITICAL ANCHOR FOR SPECTRUM NEWS: More than halfway. In fact, the photo op that they're clearly looking for which is the president of the United States shaking hands with and smiling with the North Korean dictator -- that's the whole thing. And they get away with it if there's no talk of human rights. They get to keep people jailed. They get to keep people oppressed. They get to keep people under the thumb of a brutal hereditary dictatorship, and they know that the United States is not going to raise a peep. That's the whole reason they have the nuclear weapons. And so, the entire -- the entire sordid racket really sort of works to the benefit of the North Koreans and it's very distressing to see. It also sends a terrible, terrible message to people who are fighting the good fight in Russia, in China, in the Philippines, and all around the world who wanted to believe and who would like to believe that the leader of the free world -- one of those titles we bestow on every president of the United States, is simply not going to talk about them, think about them, or use any kind of leverage to try and better their plight. It's really very distressing.

BLACKWELL: From an ethical perspective, Walter, to have this meeting not in the Roosevelt room or in another place in the White House but in the oval office, how do you receive that?

WALTER SHAUB, CNN CONTRIBUTOR AND FORMER DIRECTOR OF THE GOVERNMENT ETHICS OFFICE: I mean, there's no government ethics issues in terms of the rules or government ethics laws. But as Errol just said, the issue is the legitimizing of the North Korean regime. And this is something past president and avoided doing. The optics are everything here because it actually strengthens the North Korean leader's position.

BLACKWELL: So, let me ask you about another element here looking forward to this meeting in ten days in Singapore. The Washington Post is reporting that the U.S. planners are working to figure out who will pay for the hotel accommodations for the North Korean delegation. Their property of choice is the Fullerton. The presidential suite goes for $6,000 a night. The U.S. is willing to pay it but plan, as I understand, that might be insulting, Walter, to the North Koreans. Also, it would violate sanctions that they would have to be away. This could be a secondary, tertiary issue, but is it substantial enough that it could cause some problems in the final ten days?

[07:22:11] SHAUB: Yes, well, it goes to how poorly thought through this entire thing is. I mean, right now, they surely have lawyers scrambling to research what processes they had to go through to comply with appropriations law and with the sanctions provisions. And I'm sure they'll find some kind of way. Once again, we get back to the legitimizing of North Korea, and now we're essentially paying tribute if we wind up paying for their hotel. I mean, it's -- the idea that we're getting anything out of this meeting just is really confusing.

BLACKWELL: Speaking of getting something out of the meeting, Will, we've talked about the expectations the U.S. will have going into this, lowering them from potentially a denuclearization deal that we talked about several weeks ago now to a getting to know you plus, whatever that is. Do wean what Kim expects out of this first meeting?

RIPLEY: Well, normally when two heads of state meet, it's after the results of months or even years of diplomacy at lower levels. So, when they get together, they can actually walk away with a substantive deal. And it seems as if President Trump has now realized after his discussions, perhaps, with the North Koreans that he's not going to get that so easily. The United States thinking that North Korea is going to completely denuclearize within six to 12 months unilaterally and expect nothing in return in terms of economic concessions and security guarantees is just simply a fantasy, according to many Korea watchers and, frankly, to the North Koreans themselves who said, you know, they would always take security guarantees making sure that their government stays in power over any sort of economic concessions from the United States. And as far as what Kim Jong-un wants, I mean, he wants the eventual elimination of U.S. troops on the Korean Peninsula, an end to the American nuclear umbrella that protects South Korea and Japan, and he wants his country to open up economically with the rest of the world so that he can improve the living standards of the 25 million people who were living there. Speaking of money, by the way, the issue that you touched on just a moment ago, Victor, about paying for North Korea's hotel; keep in mind that in previous summits, under-the-table payments were made to the Koreans just for having the summits with South Korea to the tune of hundreds of millions of dollars. So, even if the United States or Singapore, or someone spends a few million dollars for their hotel rooms here, that still would be a drop in the bucket compared to what the previous North Korea leader, Kim Jong-il, received just for sitting down and having talks with the South Koreans during those previous summits.

BLACKWELL: Errol, finally, I wonder what you make up that contradiction we heard from the president yesterday after the meeting with Kim Yong-chol in which he started by saying it's an interesting letter, oh, would you love to see it, how much -- how much to read it? And then five minutes later, admitted that I haven't even opened the envelope. I don't know what the letters says.

LEWIS: Yes. Well, that's the president going back to his prior job as a game show host where it's always about sort of the tease and the -- wouldn't you like to see it? Then, tune in next week -- that sort of a thing. The startling admission that he had no idea what was in the letter doesn't speak well to where things are going. It seems -- instance after instance that the North Koreans have thought this through and the president of the United States perhaps has not.

BLACKWELL: And I'm short on time here, but Will, you were there at Punggye-ri watching the explosions there at this nuclear test site. Now to hear from arms control experts telling CNN and we know that U.S. intelligence underscores that that was just for show. Your reaction to having taken the train ride, and the bus ride, and the hike, and now we know that it was potentially all for naught.

RIPLEY: Well, clearly, a lot of what we saw was theatrics. For example, they blew up all the log cabins on the property. It wasn't really necessary to blow those up. We know that they can rebuild those in a matter of days. And as far as the tunnel, you know, we only saw the entrances explode. We were standing as our reporting have stated about 500 meters away. They were not large explosions that would've injured us. We never felt like there was debris flying in our direction. And so, you know, I said at the time and I'll say it now, we had no way to verify if what we were seeing was actually the irreversible destruction of Punggye-ri as the North Koreans claim. They said they were being transparent. Obviously, there's a lot of people feel otherwise. BLACKWELL: Will Ripley, Errol Lewis, Walter Shaub, thank you all.

LEWIS: Thank you.

[07:26:19] PAUL: One of America's biggest breweries warns: their prices could be going up because of tariffs imposed by President Trump. We'll take about it. Stay close.

(COMMERCIAL BREAK)

[07:31:14] PAUL: So glad to have you here at 31 minutes past the hour now. I'm Christi Paul.

BLACKWELL: I'm Victor Blackwell.

PAUL: So today, thousands of people are expected to march nationwide in a Wear Orange campaign. It calls attention to gun violence and gun safety awareness. Why orange? Well, of course, it's the color that hunters wear in the woods to protect themselves and other people from gunfire.

A friend of one of the campaign founders was shot by a random gunman near her school playground, and that incident motivated her to get informed, to get more involved, and she joins us now. Co-founder of Wear Orange and gun reform, Nza-Ari Khepra.

Nza-Ari, thank you for being here. We so appreciate it. You had said -- you said this, "After we lost Hadiya, there were a lot of emotions going on." Help us really understand those emotions and how that's shaping what you're doing today.

NZA-ARI KHEPRA, COORDINATOR, WEAR ORANGE CAMPAIGN: For sure, first and foremost, there is definitely sadness and grief because of the situation. Hadiya was a huge part of our community, and so, losing her was very tough for a lot of us. There was also a lot of anger. There was adverse reaction to the media attention that Hadiya was receiving.

Partially because, you know, there was definitely some misinformation shoot into it all. But also on top of all of that, we were just angry that other people in our community as well didn't receive the same amount of attention. There was -- their definitely needed to be more coverage of the everyday violence that we were experiencing in Chicago.

And from that all, we wanted to make sure that Hadiya's name was continued to -- like continue to be commemorated. But also we made sure, we held every life to that same regard.

PAUL: So, how are you taking those emotions then and putting them into some sort of concrete action?

KHEPRA: Yes, first and foremost, just as I said before since Hadiya was such a huge part of our community, the reason that she was that way was because she confronted issues and made sure that she genuinely found a solution for it. And I think that we took that same spirit and the same motivation, and we want it to apply it to our movement when we were trying -- you know, continue to respect and commemorate Hadiya.

So, it's this drive that we have to prevent this from the same pain from happening to any other family, to any other group of friends or loved ones. And we use that in order to continue moving throughout this entire long-run movement.

PAUL: Have you been able to talk to anybody in Congress about this cause? Any of your local authorities there? And have they been receptive if you've been able to do so?

KHEPRA: Yes, I think that most people that we talk about, talk to people about this campaign, about -- it's hard -- it's hard to -- it's hard to have a negative review of it. I mean, it's truly -- it's truly a campaign that encompasses valuing human life. And I think, across the board, everyone can value human life regardless of what their affiliations are -- at the end of the day.

So, I truly believe that a lot of people are open and receptive to it, and, you know, many people need to continue to follow through with that action afterwards.

PAUL: Well, the NRA responded to your cause, saying, and I want to show it here, "Orange has always been ours, the NRA continues to be the world's leading gun safety organization since 1871."

Now, in response, there was an outspoken mother who's part of the Moms Demand Action group. And she said this, "The NRA opposes mandatory gun safety training in bills, they oppose background checks on private gun sales, they oppose red flag laws, they oppose banning bump stocks, they oppose child access prevention laws. So, what part of that is a gun safety?" With all of that said, do you think the NRA have -- does have an opportunity to make things different here?

[07:35:20] KHEPRA: Well, 100 percent. I think any group, person, individual, whatever, can make a change and turn things around in order to create a positive outcome. And I look to them and challenge them to do the same thing. I believe that this initial response, comment definitely needed to be reviewed a lot more. Especially, since there is no reason to try to co-up or try to steal back a color when in actuality we're using the color to preserve human life.

To continue to say that we respect these people who have died and who have been -- you know, put in this position regardless of where they're at, what they are doing. You know, these are innocent people. And if you can turn this into a fighting, you know, arguing match, then, that's complete insensitive to what we're trying to do here.

PAUL: All right. Nza-Ari Khepra, we've run out of time. It's been so good to talk to you this morning. Thank you.

KHEPRA: It's good talking to you, as well.

PAUL: Thank you. BLACKWELL: Still ahead, President Trump's tariffs could affect many Americans and raise the cost of items you buy every day. We're taking a look at the potential impact ahead.

And this weekend, "UNITED SHADES OF AMERICA" with W. Kamau Bell, heads to historically black colleges and universities. Here's a sneak peek.

(BEGIN VIDEOTAPE)

WALTER KAMAU BELL, CNN HOST, UNITED SHADES OF AMERICA: Can I see some? Is there anything you can show me?

UNIDENTIFIED MALE: Yes. We can -- we can all --

KAMAU BELL: We've got the '90s party music you'd up on me? You got -- is it?

UNIDENTIFIED MALE: You've got some music?

UNIDENTIFIED MALE: Oh! Omega! My brothers say --

UNIDENTIFIED FEMALE: (INAUDIBLE) in the 1913 founded delta sigma theta.

BELL: Listen, this man looks like he set this up for the T.V. show, but we didn't. Believe me, they just started showing up across all generations want to rap their organization.

(END VIDEOTAPE)

BLACKWELL: Be sure to catch "UNITED SHADES OF AMERICA" with W. Kamau Bell, Sunday at 10:00 right here on CNN.

(COMMERCIAL BREAK)

[07:41:55] PAUL: Threats of U.S. tariffs on Chinese imports are escalating fears of a global trade war.

BLACKWELL: U.S. Commerce Secretary Wilbur Ross is in Beijing today, continuing trade talks. The U.S. says it plans to pursue tariffs on $5 billion worth of Chinese imports, and China has threatened to hit back with tit-for-tat tariffs on $10 billion of goods in the U.S.

And it's not just China, the U.S. slapped Canada, Mexico, the European Union with tariffs on steel and aluminum imports this week. All have announced plans to retaliate with their own tariffs against American products.

PAUL: And President Trump's decision to impose tariffs on steel and aluminum could raise prices for Americans on a range of everyday products including beer.

BLACKWELL: Here's CNN Washington Correspondent Ryan Nobles, takes a look at how the tariffs could impact the American businesses and the consumers.

NOBLES: Just as summer is set to kick off, one of America's biggest beer makers is warning their prices could be on the rise.

The cost of a can of beer is directly tied to the price of aluminum. And one of the biggest consumers of aluminum in the world is right here in Golden, Colorado. The MillerCoors Corporation. The producer of some of the most iconic beer brands in America.

(BEGIN VIDEOTAPE)

PETE COORS, CHAIRMAN, MOLSON COORS BREWING COMPANY: Well, that's a really old can.

NOBLES: Pete Coors' uncle pioneered the use of the aluminum can more than 60 years ago.

COORS: Which was new technology, obviously, the first time that it'll been done in the industry.

NOBLES: Today, more than 65 percent of their product is sold in these cans. Many of them produced in the largest can plant in the world which generates 13 million cans a day. While the overall cost of aluminum is only bumped up at small amount, an American industry surcharge called the Midwest premium, an added cost to the price to account for shipping and storing aluminum to Midwest cities, spiked close to 140 percent. That spike is directly tied to the tariff announcement. A frustration for Coors, a Republican who held a fundraiser for President Trump.

COORS: And I love what the president's done in most cases, but the tariff is a -- is a basically a tax on people who use aluminum.

NOBLES: But Philip Luck, an economist at the University of Colorado, Denver, believes it is the tariffs themselves that will inevitably lead to higher beer prices.

PHILIP LUCK, PROFESSOR, DEPARTMENT OF ECONOMICS, UNIVERSITY OF COLORADO DENVER: The main problem here again is the uncertainty generated by this the tariffs.

NOBLES: Coors, says half of their customers make $50,000 or less. According to Luck, when it comes to beer, this policy could hurt working-class Americans the most.

LUCK: You could definitely make the argument that imposing these types of tariffs is going to hurt exactly the types of people you claim to want to be helping.

NOBLES: Jim Phillips is a union carpenter, who prefers beer in a can in part because it's cheap.

JIM PHILLIPS, UNION CARPENTER: Now, I'm not happy and I'm not going to be happy about it.

NOBLES: Phillips believes if beer drinkers recognize the price hike and connect it to President Trump, it could lead some to re-evaluate their vote.

PHILLIPS: By the midterm election, we'll see how it goes, what he does. You know, does he stick with this plan of the tariff?

NOBLES: But, Chris Johnson, the manager of the Candlelight Tavern in Denver, believes those in search of refreshment may not even notice the price going up.

CHRIS JOHNSON, MANAGER, CANDLELIGHT TAVERN: Obviously economy is good, so people don't complain about it as much.

NOBLES: Pete Coors is hoping it doesn't come to that. He says he's spoken to both Vice President Mike Pence and Commerce Secretary Wilbur Ross about his concerns regarding the Midwest Premium. At this point, there are no plans for the administration to intervene.

(END VIDEOTAPE)

[07:45:16] PAUL: And thanks again to Ryan Nobles, there. Still ahead, as though traffic is not crazy enough in Southern California, add this to the mix. A small plane forced to land in the middle of a city street just as drivers ahead in home from work.

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BLACKWELL: Witnesses are calling it an absolute miracle. The pilot of a small plane says she was experiencing engine trouble and was forced to land at a busy Southern California neighborhood right in the middle of rush hour.

PAUL: But somehow, she didn't hit anything or anyone, and walked away without a scratch. She was apparently performing some practice work at the time and didn't have any passengers. Neighbors say she was calm, she seemed unfazed as she waits for help to arrive. The FAA, of course, is investigating.

[07:50:09] BLACKWELL: Democratic Senator Elizabeth Warren says she is not running for president in 2020, and this instead, focusing on her midterm re-election in the state where she won women's vote by 18 percent in 2012.

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SEN. ELIZABETH WARREN (D-MA), SENATE ARMED SERVICES COMMITTEE: Nasty women are tough, nasty women are smart, and nasty women vote.

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BLACKWELL: Well, she just tweeted out a thanks to her supporters for electing her as the first woman to the Senate from the Commonwealth of Massachusetts. And our next guest is hoping to be the second to unseat Elizabeth Warren. Beth Lindstrom, former Mitt Romney political aide, and working to his cabinet. And now a candidate for Senate in the Republican primary there in Massachusetts. She joins us live from Boston, good morning to you.

BETH LINDSTROM (R), SENATORIAL CANDIDATE, MASSACHUSETTS: Good morning, thanks for having me. BLACKWELL: All right, so let's -- it's certainly good to have you. Let's go through a few of the stories of the day before we get to the race. First, North Korea, an international arms control official tells CNN that the explosions we saw several days ago at Punggye-ri, the nuclear test site, were a little more than propaganda. That they could not have done the damage that North Korea wants the entire world to believe that it did by destroying these tunnels there. Central question here, is the administration -- is the U.S. being played by North Korea?

LINDSTROM: Well, I think you have to step back and, you know, look into the forest from the trees. I think this is historic, and everyone is speculating on all these nuances. But I think, you know, if we have an opportunity for peace here, this is -- this is historic. And I think we should wait and see what happens, peace doesn't happen in a day. And so, I'm glad that the president is taking these steps. And if we can get peace in the Koreas, that's a wonderful thing.

BLACKWELL: All right, let's talk now about these tariffs. You've said that you will be more pro-business than Elizabeth Warren. So, do you support the administration's tariffs against the E.U., against Mexico, against Canada on steel and aluminum? The Chamber of Commerce says that the president's trade policies threaten 2.6 million American jobs.

LINDSTROM: Well, I believe in free markets and free trade but it also be fair trade. So, I support some of the tariffs that might equalize us. But they have to be short and targeted, but I think you have to make sure you have fair trade.

BLACKWELL: Short and targeted. In the conversation about -- I mean, the president phrases this and frames this as a national security. Is the import of steel and aluminum from Canada a national security threat?

LINDSTROM: Well, I think what he's trying to do is get the jobs back in the United States. And if there is some unequal trade, I think that's what his motive is. Again, I say, I'm for fair trade but I'd like to see it shortened and then go away.

BLACKWELL: Now, let's talk about the race now. Central to the question of the legitimacy for the run for the Senate is how can a Republican win in Massachusetts? First, you've got -- you know, how close can you be to this president?

Let's put up a word cloud here. This was based on a survey conducted by WBUR there. And the largest -- I don't know if you can see this, but the largest words, what surveyors heard most of is idiot, incompetent, childish, unfit, dangerous, these are the words used to describe the president.

So you can't be too close to the president if these are the words they're using. You can't be too far because the president overwhelmingly won the primary there and is still very popular in the Republican Party. How can you win in Massachusetts? LINDSTROM: Well, we've won before and I've been participated in many of those campaigns. But here's what I am on Donald Trump. I will agree with him when it's right for the people of Massachusetts and I will disagree when it's not. But I'll always respect the office of the president.

And I've said I've been on boards of many executive teams, and if you always check the box or you never say anything, then you're not doing your job. And I believe the people of Massachusetts want somebody who is going to be independent thinker, get the data and then, make the right decision and speak for the people of Massachusetts. And that's what I want to do in Washington.

BLACKWELL: I've read that you have disagreed with the president on the three T's. Correct me if I'm wrong here, that's tone, temperament, and Twitter. Am I right there?

LINDSTROM: Yes, I've said that. I agree with a lot on his policy, tax reform, I think, it's done great things, you've seen the lowest unemployment rates here in the country. But, yes, I disagree on tone, temperament, and Twitter. Sometimes I say just leave the last sentence off.

BLACKWELL: OK, and so, let me just ask you the question that I asked your primary opponent Geoff Diehl, last week. I want to play for you the president's discussion, some things he said about your -- if you win the primary, your general election opponent there in the Commonwealth, Elizabeth Warren, watch.

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TRUMP: Did you ever hear Pocahontas? It's Pocahontas, Elizabeth Warren.

Pocahontas is not happy, she's not happy. She's the worst.

Pocahontas, so what you say? Elizabeth Warren?

(END VIDEO CLIP)

[07:55:05] BLACKWELL: The Native American leaders have said that the president's use of Pocahontas is a slur. I know that the Native American community there in Massachusetts is important to you, will be important to you if you are fortunate enough to be elected to the Senate. Will you call on the president now, do what your opponent in the primary did not last week and calling the president to stop using Pocahontas as a racial epithet, it's a slur.

LINDSTROM: Yes, I agree. I don't think anybody should be using racist comments. I don't think, anybody should be name-calling. I think we should stand up on our own merits in this race. And I think that you saw Elizabeth Warren last night in her convention speech where she said she gets under people's skin.

And so, both sides are doing some of this. And where she says she's just beginning. This behavior, this hyper-partisan behavior doesn't help us in Massachusetts here to create relationships in Washington. So all of that should be off the table.

BLACKWELL: Beth Lindstrom, good to have you this morning.

LINDSTROM: Thank you.

BLACKWELL: All right.

PAUL: So next hour, President Trump is going to talk more about what exactly he expects from North Korea. Stay close.

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